What is PCGS,
Professional Coin Grading Service?

PCGS
is the Professional Coin Grading Service

Founded in the mid
1980’s PCGS is one of the largest “third-party” coin grading services in
the world. In some of their advertising you will see them
mentioned as "the worlds largest rare coin authentication company", and
very likely they are.

What is Third Party
Grading?

Third party coin
grading is a “good thing”. It means that the persons grading the coin
have no vested interest in assigning a grade to benefit themselves.
Since they are not grading their own coins, they can provide an
independent objective opinion as to the condition of a coin. Whereas a
dealer or individual grading their own coins may be

inclined to assign a
grade that might benefit themselves.

PCGS is part of the
Collectors Universe Company

PCGS is located in
California and has some of the most renowned coin hobby experts on its
staff. They grade hundred of thousands of coins yearly. They are part
of the publicly traded Collectors Universe company, which is traded on
the NASDAQ stock exchange as symbol CLCT . (See
www.collectors.com )

How does PCGS grade
coins?

PCGS
determines Authenticity
- First PCGS examines the coin to determine if it is genuine. They
will not grade fake or counterfeit coins.

See if the
coin is problem-free
- Next PCGS examines the coin to see if any unusual problems may
affect the value or grade determination, such as: heavy
cleaning, damage, PVC and chemical surface problems, major
scratches, artificial toning, or unusual flaws. They may
refuse to grade problem coins.

Grading and
Encapsulation
- Finally PCGS experts determine the grade for that specific coin
and encapsulate it in a tamper-evident hard plastic “security
capsule” holder.

A unique
certification number along with the grade assigned to the coin is placed
inside the capsule holder before sealing the coin inside. Holders are
convenient and in a rectangular slab shape, which makes for easy
handling, stacking, and storage. PCGS states (2007) “PCGS's
hard plastic holder provides optimum protection for safe, long-term
storage of rare coins.”

PCGS
graded coin in slab holder

PCGS
Grading and Authenticity Guarantee

PCGS states that
their “Guarantee of Grade and Authenticity is a fundamental concept” of
theirs. In their materials (2007) PCGS says

“The
cash-back policy ensures the accuracy of the grade assigned to any PCGS
coin as long as it remains in its tamper-evident holder. If a coin is
believed to be improperly graded, and a discrepancy is found when
resubmitted through PCGS's Downgrade Resubmission service, the guarantee
entitles the coin's owner to options designed for his protection.”